Sony has dropped a bomb: the PlayStation 4 will be launched at £350 in the UK, undercutting Microsoft's Xbox One price by £80. That's roughly the equivalent of two brand new games.

The new console, shown off at the company's press conference at E3 in Los Angeles looks to be slim and thin, a vast contrast to Microsoft's large and bulky Xbox One console.

"It is sleek and visually impactful wherever you put it," Anthony House, head of Sony Computer Entertainment, said as he revealed the new console to the packed stadium.

Keeping with the black and blue colour scheme the console will be able to be set vertically or horizontally on your shelf. 

This year's E3 is a battle of the big guns with both Microsoft and Sony scrabbling to show off their hardware and exclusive games in a bid to win the console war this Christmas.

READ: Sony Playstation 4: Everything You Need To Know

For the £350 asking price you'll get the Playstation 4 console complete with a 500GB hard drive, built-in Blu-ray drive and the brand new Sony PS4 controller effectively pricing Xbox One's Kinect sensor at £80.